A Hedge Fund With 29% Return Record Is Shorting Tesla Bonds
- Asgard Credit views spreads mispriced relative to leverage
- Fund favors bonds of Faurecia, Adler Pelzer, Peugeot, Renault
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As equity investors who bet against Tesla Inc. lick their wounds, some corners of the debt market are taking a different view.
A hedge fund in Denmark that delivered a 29% return last year has stocked up on credit-default swaps on the world’s second-biggest automaker, based on a bet that its bonds are just too expensive.